May 3 (Reuters) - Xerox Corp said on Thursday its current board and management team, which included Chief Executive Jeff Jacobson, will stay, after a settlement agreement it had reached with dissenting shareholders to oust them expired.

Xerox had said on Tuesday its CEO and most of its board will step down to settle a lawsuit by activist shareholders Carl Icahn and Darwin Deason, handing over to new management which will reconsider a controversial deal with Japan's Fujifilm Holdings.

The New York Supreme Court held a hearing on Thursday on an objection by Fujifilm to the agreement. The judge held off a decision and the schedule for the next hearing has not been decided.

The deal would terminate if the court does not act before 8:00 p.m. ET on May 3, 2018, Xerox said on Tuesday. (Reporting by Shubham Kalia in Bengaluru Editing by Muralikumar Anantharaman)